2018 Real Estate Predictions
Posted by Garman Group on
The real estate market has changed drastically over the past few years and 2017 was no different. Groundbreaking in so many ways, it will be very interesting to see what 2018 brings. We dug up some of the most accurate predictions for the 2018 real estate market and we're excited to head into the new year.
Let’s start with addressing what’s most weighing on everyone’s mind throughout Canada — the new tightened mortgage regulations taking effect January 1, 2018. The new rules require that all applicants go through a “stress-test” to get the deal on your financial situation. What exactly does that mean? These new regulations ensure Canadians don’t take on more financial stress than they can handle. Mortgage applicants go through a stronger evaluation of their financial situation and could be subject to higher mortgage rates with down payments of more than 20%. Predictions say this will result in a 20% decrease in housing affordability for most. Translation: buyers will qualify for 20% less home than they may have hoped.
Canadian Real Estate Market
Even with these stricter regulations, CREA (Canadian Real Estate Association) is still forecasting positive results for 2018. Ontario sales hit a bit of a slump during the summer and are currently rebounding although not quite to early 2017 numbers. BC is expected to see an increase, especially due to the fast-rising sales on Vancouver Island and the Fraser Valley.
Manitoba, Eastern Ontario, New Brunswick, Nova Scotia and P.E.I. are expected to see activity steadily improving. Average prices in these areas have been increasing slowly and that trend should continue.
Alberta, Saskatchewan, Newfoundland and Labrador continue to see a large supply of housing available. Therefore sales activity is running a little low in these areas, and will likely continue to do so in 2018.
All in all, National real estate sales are expected to reach 486,600 units, which is a decline of 5.3% over 2017.
B.C. Real Estate Market
The BCREA (British Columbia Real Estate Association) has predicted that residential sales for the province will drop by about 8.8% to sell 91,000 units in 2018. However, average residential prices are forecast to increase by 3.1%. This is a result of the supply of homes being at record lows, resulting in higher prices.
Victoria Real Estate Market
Victoria had its best sales year on record in 2017* and 2018 is expected to stabilize the market. Sales prices will rise slightly as 2018 continues to be a seller’s market, with approximately 9500 units to be sold during the year.
We Can Help
As mentioned, especially in Victoria, it continues to be a seller’s market! But whether you are selling or wanting to buy, we can help you through your transition. For advice, a home appraisal, or any other comments or questions, please don’t hesitate to contact us at the Garman Group. www.garmangroup.ca.
*Tracking real estate numbers started in 1990